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Kerala Ayurveda Ltd.

BSE: 530163 Sector: Health care
NSE: N.A. ISIN Code: INE817B01025
BSE 00:00 | 12 Aug 75.65 1.75
(2.37%)
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75.00

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77.40

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71.20

NSE 05:30 | 01 Jan Kerala Ayurveda Ltd
OPEN 75.00
PREVIOUS CLOSE 73.90
VOLUME 1603
52-Week high 86.05
52-Week low 53.25
P/E 90.06
Mkt Cap.(Rs cr) 80
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 75.00
CLOSE 73.90
VOLUME 1603
52-Week high 86.05
52-Week low 53.25
P/E 90.06
Mkt Cap.(Rs cr) 80
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kerala Ayurveda Ltd. (KERALAAYURVEDA) - Auditors Report

Company auditors report

To the Members of Kerala Ayurveda Limited

Report on the Audit of the Standalone Financial Statements.

Opinion.

1. We have audited the accompanying standalone financial statements ofKerala Ayurveda Limited (“the Company”) which comprise the Balance Sheet as atMarch 31 2021 the Statement of Profit and Loss (Including other Comprehensive Income)the Cash Flow statement and the statement of changes in equity for the year then endedand a summary of the significant accounting policies and other explanatory information.

2. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 (Act) in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia including Indian Accounting Standards (‘Ind AS') specified under section133 of the act of the state of affairs (financial position ) of the Company as at March31 2021 and its Loss (financial performance including other Comprehensive Income) itscash flows and the changes in equity for the year ended on that date.

Basis of Opinion

3. We conducted our audit in accordance with the Standards on Auditingspecified under section 143(10) of the Act. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the standaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (‘ICAI') together with the ethical requirements that are relevant to Ouraudit of the financial statements under the provisions of the Act and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

4. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statementsfor the financial year ended March 31 2021. These matters were addressed in the contextof our audit of the standalone financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. We have determined thematters described below to be the key audit matters to be communicated in our report.

Key Audit Matter How the Key Audit Matter was addressed in our audit
Refer to note 2.f ‘Inventories' to the standalone financial statements. The total value of inventory as of March 31 2021 amounted to 950 lakhs representing 9.87% of the total assets (2020: 1146 Lakhs 12.25% of the total assets). Inventories are measured at the lower of cost and net realisable value on FIFO basis . The valuation of inventory is dependent on establishing appropriate valuation controls. We focused on this area as Management judgment is applied to estimate the appropriate write-down for obsolete inventories and the indirect production costs manually capitalised as inventory. These judgments are key elements in the valuation of inventories. We have performed the following principal audit procedures in relation to Inventory valuation:
We tested relevant internal controls that the Company uses to ensure proper valuation of inventory including the procedures for write-down of obsolete inventory and the indirect production costs manually capitalised as inventory.
We tested the adequacy of write- downs for excess and/or obsolete inventory by verifying future demand data historical usage historical accuracy of write-downs and management's plans to utilise the inventory.
We evaluated the significant judgments and estimates made by Management in applying Company's accounting policy in relation to indirect production costs.
We assessed the Company's disclosures in the financial statements in respect of inventory.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

5. The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Managementreport Chairman's statement Director's report etc but does not include thestandalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements

6.The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the state of affairs (financialposition) profit or loss ( financial performance including other comprehensive income)changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted In India including the Indian Accounting Standardsspecified under section 133 of the Act .This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

7.In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

8.Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the standaloneFinancial Statements

9.Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with Standards on auditing will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesestandalone financial statements.

10.As part of an audit in accordance with Standards on Auditing weexercise professional judgment and maintain professional skepticism throughout the audit.we also:

Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theact we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report.

However future events or conditions may cause the Company to cease to continue as agoing concern

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

11.We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

12.We also provide those charged with governance with a statement thatwe have complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

13.From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

14.As required by the Companies (Auditor's Report) Order 2016issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

15.Further to our Comments in Annexure A as required by section 143(3)of the Act We report that:

a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books

c. The standalone financial statements dealt with by this report are in agreement withthe books of accounts

d. In our opinion the aforesaid standalone financial statements comply with Ind ASspecified under Section 133 of the Act

e. On the basis of the written representations received from the directors and taken onrecord by the board of directors none of the directors is disqualified as on March 312021 from being appointed as a director in terms of Section 164(2)of the Act.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in “Annexure B”.

g. In our opinion the managerial remuneration for the year ended March 31 2021 hasbeen paid / provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act;

h. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i)the Company does not have any pending litigations which would impact its financialposition

ii)the Company does not have any long-term contracts requiring a provision for materialforeseeable losses.

iii)The Company does not have any amounts required to be transferred to the InvestorEducation and Protection Fund.

For Maharaj Rajan and Mathew
Chartered Accountants
Firm Registration Number 001932S
Mathew Joseph Bcom FCADISA(ICA)
Ernakulam (Partner)
30/06/2021 Membership Number 022658

Annexure A to the Independent Auditor's Report

The annexure referred to in Independent Auditors report to the membersof The Company on the standalone financial statements for the year ended 31stMarch 2021 We report that .

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets comprising of property plant andequipment capital work-in-progress and other intangible assets.

ii. (b) The company has a program of verification to cover all the items of fixedassets comprising of property plant and equipment capital work-in-progress and otherintangible assets in a phased manner which in our opinion is reasonable having regard tothe size of the company and the nature of its assets. Pursuant to the program certainfixed assets were physically verified by the management during the year. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company. iii. In our opinion the management has conductedphysical verification of inventory at reasonable intervals during the year except forgoods-in-transit and stocks lying with third parties. For stocks lying with third partiesat the year-end written confirmations have been obtained by the management. No materialdiscrepancies were noticed on the aforesaid verification

iv. According to the information and explanations given to us the Company has grantedunsecured loans to subsidiaries covered in the register maintained under Section 189 ofthe Act in respect of which

a) The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the company's interest.

b) The Schedule of Repayment has been stipulated for the loans granted and repaymentsare regular.

c) There are no overdue amount remaining outstanding as at the year-end

v. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of the section 185 and 186 of the Act in respectof grant of loans making investments and providing guarantees and securities asapplicable.

vi. In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

vii. We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records underSub-Section (1)of Section 148 of the Act in respect of Company's products and are ofthe opinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

viii. Undisputed statutory dues including GST provident fund employees' stateinsurance income-tax sales-tax service tax duty of customs value added tax cess andother material statutory dues as applicable have generally been regularly deposited tothe appropriate authorities though there has been a slight delay in a few cases. Furtherno undisputed amounts payable in respect thereof were outstanding at the year-end for aperiod of more than six months from the date they became payable.

ix. Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment of duesto Banks Financial Institutions Government or debenture holders. The Company did nothave any outstanding debentures during the year .

x. The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments). In our opinion the term loans were applied for thepurposes for which the loans were obtained.

xi. To the best of our knowledge and according to the information and explanation givento us no material fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the period covered by our audit..

xii. According to the information and explanations given to us and based on ourexamination of the records of the Company The Company has paid/provided for ManagerialRemuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Companies Act.

xiii. The Company is not a Nidhi Company. Therefore the provisions of clause 3 (xii) ofthe Order are not applicable to the Company.

xiv. In our opinion all transactions with the related parties are in compliance withSections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable Ind AS.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year

xvi. According to the information and explanations given to us and based on ourexamination of the records of the Company the company has not entered into non-cashtransactions with directors or persons connected with him; Accordingly Paragraph 3 (xv) ofthe Order is not applicable.

xvii. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act1934

For Maharaj Rajan and Mathew
Chartered Accountants
Firm Registration Number 001932S
Mathew Joseph Bcom FCADISA(ICA)
Ernakulam (Partner)
30/06/2021 Membership Number 022658

Independent Auditor's report on the Internal Financial Controlsunder Clause (i) of Sub-Section 3 of Section 143 of the Companies Act 2013 (“theAct”)

In conjunction with our audit of the standalone financial statements ofKerala Ayurveda Limited (“the Company”) as of and for the year ended 31 March2021 we have audited the internal financial controls over financial reporting of theCompany as of that date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the “Guidance Note”) issued by Institute of CharteredAccountants of India (‘ICAI'). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of the Company's businessincluding adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Standards on Auditing issued by the ICAI and deemed to beprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls over financial reporting and the Guidance Note issued by theICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the Internal Financial Controls system over Financial Reporting and theiroperating effectiveness. Our audit of Internal Financial Controls over Financial Reportingincluded obtaining an understanding of Internal Financial Controls over FinancialReporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's InternalFinancial Controls system over Financial Reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's Internal Financial Controls over Financial Reportingis a process designed to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A Company's InternalFinancial Controls over Financial Reporting include those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the Company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorizations of Management and Directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the Company's assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of Internal Financial Controls overFinancial Reporting including the possibility of collusion or improper Managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the Internal Financial Controls overFinancial Reporting to future periods are subject to the risk that Internal FinancialControls over Financial Reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

For Maharaj Rajan and Mathew
Chartered Accountants
Firm Registration Number 001932S
Sd/-
Mathew Joseph Bcom FCADISA(ICA)
Ernakulam (Partner)
30/06/2021 Membership Number 022658

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